Dear Stakeholders,

I am delighted to report Uno Minda’s robust performance, marked by growth across all our products and systems. This success is driven by well planned expansion strategies, increasing kit value, market share gains, and our innovative, differentiated product offerings, all supported by strong demand and industry growth.

As we enter the next financial year, the automotive landscape continues to evolve dynamically, driven by changing consumer behaviour, OEMs’ seeking advanced technological products, push towards localisation, focus on safety and comfort and transition to green mobility. At Uno Minda, we're not just recognising these trends – we're actively embracing them as opportunities for excellent business growth.

India's economy thrived in FY 2023-24, achieving a stellar 8.2% growth despite global headwinds. This remarkable performance emphasises the robust domestic demand and strategic government policies. Infrastructure development, rising private investment, and manufacturing sector strength have been crucial in cementing India's status as the fastest-growing major economy. These factors have propelled the country towards sustained economic excellence.

The Indian automobile industry continues its upward trajectory, propelled by a robust growth momentum across various segments. This sector showcased remarkable resilience amid economic fluctuations and regulatory complexities. In FY 2023-24, the industry witnessed a notable surge, with passenger vehicle (PV) production touching 4.9 Million units, driven by robust domestic demand. The two-wheeler industry made a remarkable recovery with production of 21.4 Million units, growing by 10%. Despite experiencing marginal growth, the commercial vehicle (CV) segment remains a strategic focus area for expansion, especially in overseas markets.

The production linked incentive (PLI) scheme has emerged as a cornerstone in propelling growth within the Indian automobile and auto component industry. 85 applicants had been approved under the PLI Auto Scheme, comprising 18 applicants for Champion OEM Incentive scheme and 67 applicants for Component Champion Incentive scheme. Two Auto OEM companies were approved for both parts of the scheme.

The scheme has been successful in attracting proposed investments of ₹ 67,690 Crores against the target estimate of ₹ 42,500 Crores over a period of five years. ₹ 13,037 Crores had already been invested till 31 December 2023. Applicants have proposed employment generation of 1.48 Lakhs people, against which 28,515 jobs had already been generated till 31 December 2023. Considering the need of the Auto industry, MHI has also extended the tenure of the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components by one year i.e. starting from FY 2023-24 to FY 2027-28.

FAME-II, introduced in 2019, has provided subsidies on sales of approximately 1.2 Million two-wheelers, 1,41,000 three-wheelers, and 16,991 four-wheelers. More than ₹ 5,829 Crores has been disbursed under the FAME-II scheme.

Uno Minda has developed a robust portfolio of EV-specific components for 2Ws and 3Ws. This strategic focus has resulted in securing orders with a peak annual value of more than ₹ 3,000 Crores from EV OEMs, paving the way for market leadership in EV components.

The Centre had granted a four-month extension to the second phase of the FAME-II programme under Electric Mobility Promotion Scheme (EMPS) 2024. EMPS is being seen as a bridge scheme that will run for four months (from 1 April) to minimise disruption in EV sales due to the lapse of the FAME programme. EMPS is expected to pave the way for a comprehensive electric vehicle scheme, likely to be unveiled in the FY 2024-25 budget post-elections.

The overwhelming response of these policies shows that the industry has reposed its faith in India’s stellar progress as a world class manufacturing destination which resonates strongly with AtmaNirbharBharat - a self-reliant India Campaign. India will surely take a huge leap towards cleaner, sustainable, advanced and more efficient mobility system.

As per Society of India Automobile Manufacturers (SIAM) data, India's position as the world's third-largest car market showcases its status as the fastest-growing economy with immense potential for the country’s automotive sector. Uno Minda has actively led the industry's shift towards greener, safer, and smarter mobility, capitalising on the rising Indian vehicle market through our various strategic initiatives.

Uno Minda's growth trajectory within the automotive industry is fuelled by a multi-pronged strategic approach. This multi-pronged approach includes strategic capacity expansion, market share growth, identity localisation opportunity, in-house development of innovative products and solutions and a technology tie-up aligned with the PACE (Personalisation, Autonomous, Electrified, and Connected) trend. Our focus manufacturing excellence allows us to deliver innovative and high-quality solutions to our customers.

Furthermore, recognising the early trends of a burgeoning demand for EV two wheelers and investing in R&D for EV specific components, Uno Minda is now strategically positioned to capitalise on this opportunity through unparallel product portfolio of more than 10 EV-specific components for two wheelers.

Building on the success of EV two wheeler components and solutions, the Company is now intending to replicate the same for EV four-wheeler. The Company has entered into technical license agreement with StarCharge for the manufacturing of wall-mounted AC chargers and Inovance Automotive for the manufacturing of Charging Control Units (CCUs), EV inverter, EV motors, and the revolutionary next-generation 3-in-1 electric drive systems, popularly known as e-Axles in India.

Central to our technological advancement is CREAT, our centralised R&D flagship technology centre. This centre enhances our technical capabilities across multiple domains, including embedded electronics, light weighting, software, and ADAS, among others. At Uno Minda, we aim to achieve technology leadership. Towards this end, we foster a culture of creativity, innovation, and collaboration, empowering teams to challenge the status quo and develop ground-breaking solutions that shape the future of mobility. Through comprehensive market research and strategic planning, we identify untapped revenue streams and introduce innovative products that address emerging customer needs. This further drives sustainable growth and enables us to maintain a competitive edge in the automotive industry.

Driving the New

The automotive industry is poised for significant growth, driven by the increasing demand for passenger vehicles in every household. By manufacturing future-ready products, we are well-positioned to cater to this expanding market. Our processes are aligned with the Company's vision, focussing on customer-centric redesigned products and boosting exports.

In our transformational journey, we have adopted 'Driving the New' as our new positioning line, shaping our future direction. Our range of innovative products, including Acoustic Vehicle Alerting System (AVAS), Electric Vehicle Supply Equipment (EVSE), off-board and on-board chargers, smart plugs, and ADAS, reflects our commitment to making the life of end consumers simpler and safer. These products are available both online and offline, ensuring broad accessibility.

At Uno Minda Limited, we believe that embracing a culture of daily innovation is crucial for our advancement. This is evident in our efforts to enhance our value chain, strengthen interactions with internal and external stakeholders, and deepen engagement with our partners. By sourcing top-quality raw materials, we can manufacture premium products that meet the highest standards.

Overall, 'Driving the New' signifies our commitment to tapping into every opportunity, making ourselves resilient, and addressing the growing needs of the industry to stay ahead of the curve.

Environment, Social, and Governance (ESG) at Uno Minda

We recognise the importance of implementing environmental initiatives within our organisation. By strictly adhering to regulations and guidelines, we minimise our environmental impact in the areas where we operate. Over 90% of our plants are ISO 14001 and ISO 45001 certified, showcasing our commitment to advanced Environmental and Occupational Health and Safety (OHS) Management Systems. Since 2007, we have focussed on sustainable practices, including energy and emissions management, and expanded to comprehensive water management strategies by 2010. We comply with strict water withdrawal limits through state-of-the-art STPs and ETPs, and our waste management protocols align with local regulations. We reduce our environmental footprint by increasing renewable energy use and implementing energy efficient projects, such as low-emission LED equipment and greener fuel alternatives. Our vision also encompasses social responsibility, enhancing community well-being through the Suman Nirmal Minda Foundation's initiatives in education, vocational training, healthcare, and community development. Operating 17 CSR centres, three senior secondary schools, and a hospital in 7 states, we strive to build an inclusive society where everyone can thrive.

Strategic Focus Areas

Looking ahead, Uno Minda Limited remains confident in its capabilities and steadfastly committed to aligning with industry advancements to ensure a sustainable competitive edge. We prioritise the continuous enhancement of our team's efficiency, empowering them to become key drivers of business success. Our unwavering objective is to consistently deliver value to our esteemed business partners and contribute meaningfully to society.

We are actively engaged in pioneering innovative technologies and solutions that will shape the future of the automotive industry. Furthermore, Uno Minda recognises the criticality of environmental responsibility. We are demonstrably committed to addressing the climate challenge through the design of energy efficient products and the adoption of sustainable practices across our operations.

Thank you for your continued support and trust in Uno Minda Limited. Together, we will navigate the future with resilience and innovation.

Best regards,

Mr. Nirmal K. Minda

Chairman & Managing Director